Finding 553673 (2024-002)

Material Weakness
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2025-04-01
Audit: 352239
Organization: University of Puerto Rico (PR)
Auditor: Ernst & Young

AI Summary

  • Core Issue: The University lacks effective internal controls to ensure advanced funds are disbursed on time.
  • Impacted Requirements: Compliance with federal cash management regulations is at risk, potentially leading to noncompliance.
  • Recommended Follow-Up: Implement internal controls and monitoring procedures to ensure timely disbursement of advanced funds.

Finding Text

Finding Number: 2024-002 Federal Program Student Financial Assistance (SFA) Cluster - Various ALN COVID-19 Higher Education Emergency Relief Fund (HEERF) - 84.425 Compliance Requirement Cash Management Criteria The Uniform Guidance requires that non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal statues, regulations, and the terms and conditions of the federal award. Furthermore, for drawdowns in the advanced payment method, an entity must have effective internal controls in place to minimize the time elapsing between transfer of federal funds from the federal entity and the disbursement by the non-federal entity. Condition It was noted that there is a lack of internal controls in place to ensure that advanced funds were disbursed within the established timeline. Specifically, there is a lack of formalized documentation, procedures, and monitoring mechanisms to track and enforce controls specifically related to minimizing the time elapsed between transfer of federal funds and disbursement by the University. Cause Controls over cash management, more specifically, related to minimizing the time elapsed between the receipt of advanced funds and disbursement by the University do not seem to be designed or functioning as intended. Effect The lack of properly designed or effectively operating internal controls could lead to the University not meeting federal requirements in regards to time elapsed between receipt and disbursement of advanced funds, which could lead to noncompliance, questioned costs and loss of funds. Questioned Costs Not applicable. Context Management was not able to provide sufficient evidence to support that internal controls related to the timely disbursement of advanced funds are in place and operating effectively. Identification as a repeat finding, if applicable Not applicable. Recommendation We recommend the University implements internal controls and/or monitoring procedures to ensure the timely disbursement of advanced funds. Management’s Response The University of Puerto Rico concurs with this finding. Management response is included in a separate document. Conclusion Not applicable. Management’s response is consistent with the finding.

Categories

Cash Management Subrecipient Monitoring Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 553654 2024-002
    Material Weakness
  • 553655 2024-003
    -
  • 553656 2024-004
    Material Weakness Repeat
  • 553657 2024-005
    Material Weakness Repeat
  • 553658 2024-002
    Material Weakness
  • 553659 2024-003
    -
  • 553660 2024-004
    Material Weakness Repeat
  • 553661 2024-005
    Material Weakness Repeat
  • 553662 2024-002
    Material Weakness
  • 553663 2024-003
    -
  • 553664 2024-004
    Material Weakness Repeat
  • 553665 2024-005
    Material Weakness Repeat
  • 553666 2024-002
    Material Weakness
  • 553667 2024-003
    -
  • 553668 2024-004
    Material Weakness Repeat
  • 553669 2024-005
    Material Weakness Repeat
  • 553670 2024-002
    Material Weakness
  • 553671 2024-002
    Material Weakness
  • 553672 2024-002
    Material Weakness
  • 553674 2024-002
    Material Weakness
  • 553675 2024-002
    Material Weakness
  • 1130096 2024-002
    Material Weakness
  • 1130097 2024-003
    -
  • 1130098 2024-004
    Material Weakness Repeat
  • 1130099 2024-005
    Material Weakness Repeat
  • 1130100 2024-002
    Material Weakness
  • 1130101 2024-003
    -
  • 1130102 2024-004
    Material Weakness Repeat
  • 1130103 2024-005
    Material Weakness Repeat
  • 1130104 2024-002
    Material Weakness
  • 1130105 2024-003
    -
  • 1130106 2024-004
    Material Weakness Repeat
  • 1130107 2024-005
    Material Weakness Repeat
  • 1130108 2024-002
    Material Weakness
  • 1130109 2024-003
    -
  • 1130110 2024-004
    Material Weakness Repeat
  • 1130111 2024-005
    Material Weakness Repeat
  • 1130112 2024-002
    Material Weakness
  • 1130113 2024-002
    Material Weakness
  • 1130114 2024-002
    Material Weakness
  • 1130115 2024-002
    Material Weakness
  • 1130116 2024-002
    Material Weakness
  • 1130117 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $163.21M
84.268 Federal Direct Student Loans $56.13M
84.938T Disaster Recovery Assistance for Education $9.01M
10.511 Smith-Lever Extension Funding $6.70M
93.351 Research Infrastructure Programs $5.98M
10.203 Payments to Agricultural Experiment Stations Under the Hatch Act $4.50M
84.033 Federal Work-Study Program $4.12M
93.217 Family Planning Services $3.17M
84.425L Education Stabilization Fund $2.86M
84.007 Federal Supplemental Educational Opportunity Grants $2.70M
93.662 Extramural Research Facilities Restoration Program: Hurricanes Harvey, Maria, and Irma – Construction $2.19M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $2.06M
14.218 Community Development Block Grants/entitlement Grants $1.94M
10.514 Expanded Food and Nutrition Education Program $1.62M
93.397 Cancer Centers Support Grants $1.42M
84.042 Trio Student Support Services $1.26M
84.120 Minority Science and Engineering Improvement $1.09M
93.658 Foster Care Title IV-E $1.02M
93.632 University Centers for Excellence in Developmental Disabilities Education, Research, and Service $753,961
93.157 Centers of Excellence $746,401
84.047 Trio Upward Bound $736,219
93.925 Scholarships for Health Professions Students From Disadvantaged Backgrounds $674,571
12.420 Military Medical Research and Development $673,866
93.394 Cancer Detection and Diagnosis Research $641,623
43.001 Science $609,973
93.575 Child Care and Development Block Grant $570,212
93.352 Construction Support $560,531
10.237 From Learning to Leading: Cultivating the Next Generation of Diverse Food and Agriculture Professionals $523,865
84.044 Trio Talent Search $520,966
97.077 Homeland Security Research, Development, Testing, Evaluation and Demonstration of Technologies Related to Countering Weapons of Mass Destruction $517,667
93.273 Alcohol Research Programs $473,414
15.808 U.s. Geological Survey Research and Data Collection $466,488
93.153 Coordinated Services and Access to Research for Women, Infants, Children, and Youth $453,937
66.605 Performance Partnership Grants $409,494
47.079 Office of International Science and Engineering $396,327
20.507 Federal Transit Formula Grants $394,475
93.865 Child Health and Human Development Extramural Research $387,138
20.616 National Priority Safety Programs $367,763
84.425E Education Stabilization Fund $356,407
93.143 Niehs Superfund Hazardous Substances_basic Research and Education $354,287
84.425F Education Stabilization Fund $339,002
93.943 Epidemiologic Research Studies of Acquired Immunodeficiency Syndrome (aids) and Human Immunodeficiency Virus (hiv) Infection in Selected Population Groups $325,388
84.116 Fund for the Improvement of Postsecondary Education $286,463
10.902 Soil and Water Conservation $281,288
47.084 Nsf Technology, Innovation, and Partnerships $274,689
11.467 Meteorologic and Hydrologic Modernization Development $272,314
93.310 Trans-Nih Research Support $264,470
93.464 Acl Assistive Technology $254,969
93.914 Hiv Emergency Relief Project Grants $250,329
93.172 Human Genome Research $249,935
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $233,550
93.113 Environmental Health $221,989
93.879 Medical Library Assistance $221,261
45.301 Museums for America $219,505
84.129 Rehabilitation Long-Term Training $217,150
93.127 Emergency Medical Services for Children $213,747
93.359 Nurse Education, Practice Quality and Retention Grants $212,980
93.866 Aging Research $202,898
11.463 Habitat Conservation $201,348
12.630 Basic, Applied, and Advanced Research in Science and Engineering $198,924
10.329 Crop Protection and Pest Management Competitive Grants Program $187,747
10.443 Outreach and Assistance for Socially Disadvantaged and Veteran Farmers and Ranchers $185,162
10.322 Distance Education Grants for Institutions of Higher Education in Insular Areas $184,328
93.867 Vision Research $175,013
93.262 Occupational Safety and Health Program $171,621
45.149 Promotion of the Humanities Division of Preservation and Access $165,292
11.460 Special Oceanic and Atmospheric Projects $162,773
93.236 Grants to States to Support Oral Health Workforce Activities $162,312
84.335 Child Care Access Means Parents in School $161,347
15.805 Assistance to State Water Resources Research Institutes $152,635
93.876 Antimicrobial Resistance Surveillance in Retail Food Specimens $145,168
45.162 Promotion of the Humanities Teaching and Learning Resources and Curriculum Development $143,136
93.399 Cancer Control $135,227
16.820 Postconviction Testing of Dna Evidence $132,677
47.049 Mathematical and Physical Sciences $130,263
16.575 Crime Victim Assistance $118,571
11.303 Economic Development Technical Assistance $116,362
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $114,177
93.928 Special Projects of National Significance $112,260
12.431 Basic Scientific Research $111,346
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $110,590
10.309 Civil Defense_industrial Participation $104,213
10.202 Cooperative Forestry Research $100,564
77.008 U.s. Nuclear Regulatory Commission Scholarship and Fellowship Program $98,995
97.061 Centers for Homeland Security $98,020
45.169 Promotion of the Humanities Office of Digital Humanities $97,072
81.135 Advanced Research Projects Agency - Energy $95,609
16.582 Crime Victim Assistance/discretionary Grants $89,766
17.502 Occupational Safety and Health Susan Harwood Training Grants $85,817
11.473 Office for Coastal Management $85,513
93.068 Chronic Diseases: Research, Control, and Prevention $84,806
47.050 Geosciences $84,367
10.912 Environmental Quality Incentives Program $80,453
47.074 Biological Sciences $79,861
11.435 Southeast Area Monitoring and Assessment Program $73,654
11.419 Coastal Zone Management Administration Awards $71,590
15.630 Coastal $70,480
14.231 Emergency Solutions Grant Program $70,303
10.950 Agricultural Statistics Reports $67,594
93.647 Social Services Research and Demonstration $66,497
11.012 Integrated Ocean Observing System (ioos) $65,903
93.889 National Bioterrorism Hospital Preparedness Program $65,268
93.110 Maternal and Child Health Federal Consolidated Programs $63,144
10.652 Forestry Research $61,627
47.041 Engineering $60,374
20.701 University Transportation Centers Program $59,490
93.215 Hansen's Disease National Ambulatory Care Program $57,304
84.325 Special Education - Personnel Development to Improve Services and Results for Children with Disabilities $56,874
11.454 Unallied Management Projects $55,224
81.121 Nuclear Energy Research, Development and Demonstration $50,945
45.031 American Latino Museum Internship and Fellowship Initiative $50,843
93.969 Pphf Geriatric Education Centers $49,066
10.604 Technical Assistance for Specialty Crops Program $46,441
10.215 Sustainable Agriculture Research and Education $45,560
10.680 Forest Health Protection $45,110
12.300 Basic and Applied Scientific Research $45,099
93.396 Cancer Biology Research $44,111
93.184 Disabilities Prevention $40,447
10.223 Hispanic Serving Institutions Education Grants $39,899
10.674 Wood Utilization Assistance $39,877
81.123 National Nuclear Security Administration (nnsa) Minority Serving Institutions (msi) Program $39,466
93.121 Oral Diseases and Disorders Research $38,801
10.684 International Forestry Programs $38,647
10.205 Payments to 1890 Land-Grant Colleges and Tuskegee University $38,526
98.001 Usaid Foreign Assistance for Programs Overseas $38,368
93.837 Cardiovascular Diseases Research $37,969
93.855 Allergy and Infectious Diseases Research $36,320
93.103 Food and Drug Administration Research $36,025
10.675 Urban and Community Forestry Program $35,799
93.242 Mental Health Research Grants $35,723
20.607 Alcohol Open Container Requirements $35,446
93.124 Nurse Anesthetist Traineeship $35,165
11.431 Climate and Atmospheric Research $34,633
81.049 Office of Science Financial Assistance Program $34,316
47.076 Stem Education (formerly Education and Human Resources) $34,286
66.950 National Environmental Education Training Program $32,264
81.U01 Other Unspecified Grants and Contracts $29,451
93.859 Biomedical Research and Research Training $28,893
93.279 Drug Use and Addiction Research Programs $27,901
11.417 Sea Grant Support $27,695
84.938 Disaster Recovery Assistance for Education $27,278
21.027 Coronavirus State and Local Fiscal Recovery Funds $25,982
93.350 National Center for Advancing Translational Sciences $25,609
12.800 Air Force Defense Research Sciences Program $24,813
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $24,720
93.145 Hiv-Related Training and Technical Assistance $24,380
10.310 Agriculture and Food Research Initiative (afri) $23,883
10.309 Trade Adjustment Assistance $23,872
10.515 Renewable Resources Extension Act $23,701
16.588 Violence Against Women Formula Grants $23,701
66.951 Environmental Education Grants Program $22,858
20.215 Highway Training and Education $22,836
93.118 Acquired Immunodeficiency Syndrome (aids) Activity $22,705
93.713 Arra – Child Care and Development Block Grant $21,420
10.309 Specialty Crop Research Initiative $18,080
10.217 Higher Education - Institution Challenge Grants Program $17,405
45.129 Promotion of the Humanities Federal/state Partnership $16,415
15.657 Endangered Species Recovery Implementation $15,200
15.U01 Other Unspecified Grants and Contracts $14,753
19.009 Academic Exchange Programs - Undergraduate Programs $13,251
81.117 Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/assistance $12,848
93.838 Lung Diseases Research $12,632
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $12,182
10.328 Food Safety Outreach Program $11,985
93.395 Cancer Treatment Research $11,846
66.203 Environmental Finance Center Grants $11,666
93.924 Ryan White Hiv/aids Dental Reimbursement and Community Based Dental Partnership Grants $11,642
93.283 Centers for Disease Control and Prevention Investigations and Technical Assistance $10,873
47.075 Social, Behavioral, and Economic Sciences $10,470
10.304 Food and Agriculture Defense Initiative (fadi) $10,088
47.083 Integrative Activities $9,633
66.039 Diesel Emission Reduction Act (dera) National Grants $9,267
93.591 Family Violence Prevention and Services/state Domestic Violence Coalitions $8,743
10.558 Child and Adult Care Food Program $8,677
81.087 Renewable Energy Research and Development $8,245
84.365 English Language Acquisition State Grants $8,005
66.436 Surveys, Studies, Investigations, Demonstrations, and Training Grants and Cooperative Agreements - Section 104(b)(3) of the Clean Water Act $7,241
93.393 Cancer Cause and Prevention Research $6,951
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $6,403
11.432 National Oceanic and Atmospheric Administration (noaa) Cooperative Institutes $6,039
10.207 Animal Health and Disease Research $5,417
66.716 Research, Development, Monitoring, Public Education, Outreach, Training, Demonstrations, and Studies $5,217
10.001 Agricultural Research Basic and Applied Research $4,900
66.509 Science to Achieve Results (star) Research Program $4,696
11.481 Educational Partnership Program $4,516
93.592 Family Violence Prevention and Services/discretionary $4,317
47.070 Computer and Information Science and Engineering $4,274
43.008 Office of Stem Engagement (ostem) $3,750
45.164 Promotion of the Humanities Public Programs $3,380
10.664 Cooperative Forestry Assistance $3,373
94.006 Americorps State and National 94.006 $2,184
10.216 1890 Institution Capacity Building Grants $2,105
45.025 Promotion of the Arts Partnership Agreements $1,963
10.226 Secondary Education, Two-Year Postsecondary Education, and Agriculture in the K-12 Classroom $1,871
10.699 Partnership Agreements $1,800
10.500 Cooperative Extension Service $1,532
10.U01 Other Unspecified Grants and Contracts $1,500
11.620 Science, Technology, Business And/or Education Outreach $1,300
64.117 Survivors and Dependents Educational Assistance $1,252
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $456
93.389 National Center for Research Resources $455
93.247 Advanced Nursing Education Workforce Grant Program $410
93.307 Minority Health and Health Disparities Research $410
10.025 Plant and Animal Disease, Pest Control, and Animal Care $210
10.678 Forest Stewardship Program $4
11.307 Economic Adjustment Assistance $0
10.308 Resident Instruction, Agriculture, and Food Science Facilities and Equipment Grants $-84
84.375 Academic Competitiveness Grants $-663
15.615 Cooperative Endangered Species Conservation Fund $-672
84.031 Higher Education Institutional Aid $-1,693
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $-30,765
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $-48,545